WLFI Token Drops 50% After Justin Sun Blacklist: Centralization Risk?

The WLFI token plummeted 50% following World Liberty Financial's decision to blacklist Justin Sun's wallet, freezing 540 million unlocked and 2.4 billion locked tokens. The move has ignited fierce debate over centralization risks and the disproportionate influence of whales in nascent crypto projects.

Sun's $75 million investment in WLFI—acquiring roughly 3 billion tokens—was abruptly neutralized amid allegations of market manipulation. On-chain data reveals 50 million WLFI ($9 million) moved from his wallet pre-blacklist, contradicting his claim of "minor deposit tests." Trading volumes exceeded $1 billion in the first hour before the price collapsed from $0.40 to $0.20.

The incident exposes the fragility of governance in high-profile token launches. With community trust eroding, WLFI now faces existential questions about transparency and decentralized ideals—particularly when stakeholders can unilaterally freeze assets.